PM presents the Sustainable Economy Law, looks to reform labor market

Spanish Prime Minister José Luis Rodríguez Zapatero presented the Sutainable Economy Law to the Congress on Wednesday, announcing intentions of reforming the labor market and pensions. He ruled out that sackings would be lessened, but stressed that work contracts would become more flexible and that the employers’ organizations and unions were of the same view.

He added that the working week could be made shorter in order to counter the rising unemployment levels and more incentives and bonuses would be given to employers who signed on new workers. New actions were also announced against submerged economy and fiscal frauds. Zapatero was optimistic that the law will affect all sectors of the country’s economy and contribute to its recovery besides generating employment.

The Prime Minister also said that recession would end soon and the Spanish economy would grow starting this quarter or next year’s first. He added that he would make a new offer to the Toledo Pensions Commission in the coming days, which would guarantee stability by ‘a strict link between contributions and payments’.

The opposition groups were highly critical of the proposals made by the Prime Minster and Mariano Rajoy, leader of the PP which is part of the opposition, described it as ‘a luminous sign on an empty plot.’